DoD Vision for Item Marking and Valuation

1
UNIQUE IDENTIFICATION (UID)
GFP Industry Group MeetingOctober 6-7, 2004
2
Action Items from last meeting

• Determine status of ordnance white paper James
• Identify the data elements required and other
  issues for items at disposal Tom R.
• Solicit industry opinion on NSN issues Pat S.
  (AIA)
• Develop VLIN white paper LeAntha
• Examine DLIS mapping for NSN to UID
  capability Bruce, Pam, Max
• Update data elements list and distribute John M.
• Develop scenarios around kits Pat J., Rich C.
• Determine process for industry to notify
  government that a UID is retired Max
• Develop definitions for status categories vet
  against other definitions Pam, Max, Judy
• Follow up with DCMA (Marge Cunningham) regarding
  PCARSS Eric S.
• Share the full data structure for registry Pam R.
• Incorporate GFP field into DFARS final rule as a
  reporting indicator Lou G., Tom R.

3
UID GFP Industry Group

• Discussion Topics/Updates
• NPMA meeting in July (Sparks, NV)
• VLIN White Paper
• Retired UID white paper
• NSN/Cataloging discussions

4
Current UID Policy and Implementation
Developments (LeAntha Sumpter and Lydia Dawson)
5
USD (ATL) Objectives and Goals Update

• Integrate the various UID efforts working with
  the Joint Staff, Personnel and Readiness, PAE,
  CIO and NII, Comptroller, Logistics, IE and
  Acquisition Domains
• Develop a master plan and timeline integrating
  UID for Real Property, Personal Property, and
  RFID
• Develop strategy for managing GFP
• Develop a legacy UID policy and integrate the
  depot maintenance action plan

6
Data Roadmap
Time Line
Enterprise Visibility
Legal
FY-07
Controlling
Accountability
Value
FY-06
Custody
Organization
Program
Location
Status
Steward
FY-05
Formal
Ad Hoc
Budget
ACAT
Absolute
Relative
Condition
Disposition
ATL/PR
PAE
ATL
CJCS/PR/ATL
CJCS/PR/ATL
Property (ATL)
People (PR)
FY-04/05
Real Property
Personal Property
Person
Role
ATL
PR
7
What we have learned about Property

• Cannot get clean audit or asset visibility
  without standardizing data and processes
• DoD has countless property management systems
  ranging from paper to automated systems, spanning
  accountability, maintenance, disposal, inventory,
  and distribution
• Currently personal property handoffs occur
  inconsistently (probably at least 75 different
  processes)
• Target three receipt and acceptance approaches
  Will take five years to re-engineer all
  deployment undetermined
• Step one DoD and Business Partners (Include GFP
  Registry)
• Step two Internal DoD
• Step three External Federal and Foreign
• Step four Real Property
• Re-engineering effort should be directed by ATL
  for property

8
Property UID Systems Environment To Be
Registry Data Capture
Real Property
Direct Access
Supply Depots
WAWF
PCard
UID Registry Services
Batch Entry FFP Capture Cost Type Direct Data
Entry Expanded Access 9/04
GFP Accountability Value
PPUID
RPUID

• Updates for Changes
• Organization
• Value
• Status

Config.Mgt Systems
External Data Sources
Property Systems
DoD Legacy Systems
EPC
Maintenance Systems
Registries
Catalogs
9
Reengineering Property Transfers
10
UID Plan for Government Furnished Property
Guidance to Government Policy then DFARS

• All solicitations issued after Jan 06 must use
  UID business rules
• All GFP sent after January 2006 must have UID
  unless DCMA verifies in GFP registry that the
  contractor has an approved UID corporate or
  facility implementation plan

ATL issuance of GFP Policy October 04
11
UID Plan for Government Furnished
PropertyGuidance to Contractors - DFARS

• 2005
• No 1662 report required for Sept 05 if all
  existing property in GFP registry by July 05
  using virtual UIDs
• Jan 06
• All GFP property recorded in GFP registry
• DCMA updates existing contractor TCs using block
  changes
• Jan 07
• CAC/PKI target date for GFP functionality
• Add Real Property capability
• Password enabled

12
Final UID DFARS Rule with Proposed Changes

• Requirement Clarifications
• Items under 5K
• Equipment and reparable items when they are
  serially managed, mission essential, or
  controlled inventory
• Material and consumable items when the requiring
  activity determines that permanent identification
  is required
• General requirement for commonly accepted
  commercial marks if UID not required - deleted
• Definitions added for Issuing Agency and Lot or
  Batch number
• Embedded items
• Any serially managed subassembly component, or
  part
• Exceptions Added
• Contingency operations
• Items acquired from a small business or under FAR
  Part 12 for commercial items, when
• More cost effective for the Government to assign,
  mark, and register the UID after delivery, and
• HCA approves DF (CAE for ACAT I)

13
GSA DoD UID Campaign

• New contracts should consider the UID requirement
  at award set a new bar
• Establish UID training for GSA Associates who
  will perform Get it Right reviews
• Restructure the presentation of the policy,
  standards and UID documentation
• UID website redesign
• Continue the outreach and communication strategy
• Highlight the positive aspects of UID to vendors
  and customers
• Options available in final DFARS rule
• Enhances levels of visibility and accountability,
  enterprise efficiencies
• Strengthen customer relationships through
  superior maintenance offerings resulting in
  increased customer satisfaction, i.e., better
  partnerships
• Opportunities for GSA and vendors
• Establish a marking schedule for UID labels and
  plates
• Establish a UID training schedule

14
UID Training Campaign

• DAU/NDIA Sponsored Events
• Oct 22, Defense Supply Center Philadelphia
  General and Industrial Supplier Expo King of
  Prussia, PA
• Dec 17, USSOCOM Conference and Exhibit Tampa,
  FL
• NCMA Midwest Conference Oct 28, University of
  Minnesota
• DoD Small Business Training Conference Oct
  26-28, Temecula, CA

15
Next Steps

• September 04
• USD (ATL) issue legacy policy forecast
• Refine plan to re-engineer receipt and acceptance
• Develop plan to resource data strategy
• October 04
• USD (ATL) approve plan to resource data strategy
  (MID structure)
• Refine master plan, timeline and resources to
  integrate UID for Real Property, Personal
  Property, and RFID
• USD (ATL) issue GFP UID policy
• Staff revised directive on unique identity
• November 04
• USD (ATL) issue task to re-engineer receipt and
  accountability
• USD (ATL) strategy summit with SAEs and DCMA
• December 04
• Issue Real Property UID Guidance
• USD (ATL) Legacy policy issuance

16
Government Furnished Property Overview
17
GFP Policy Priorities

• All GFP in the hands of contractors is serialized
  with a UID, either virtual or physical, no later
  than January 1, 2006.
• DCMA and the Components modify terms and
  conditions in contracts using block changes using
  as facilities become UID capable.
• All solicitations issued after January 2006
  contain UID provisions applied to prospective GFP
• Enhancement to applications should accommodate
  the business rules related to GFP UID items.

18
GFP Policy Questions Virtual UIDs

• Virtual UID Business Rules/Process is key
• Should virtual UIDs be the permanent UID?
• Yes
• Should we allow a two step process (eventual UID
  would be different than the virtual)?
• No
• Should virtual UIDs be limited to construct 1?
  If not, why not?
• No, virtual UIDs shoculd not be limited to
  Construct 1

19
GFP IUID Strategies - Review

• Stationary GFP in Use (IPE/OPE/ST/STE). Mark
  when reentering inventory. Contractor establish
  virtual Unique Item Identifiers (UIIs), using
  Construct 1. Business rules 32-36 apply.
• GFP in Storage. Mark when placed in use.
  Contractor establish virtual UIIs, using
  Construct 1. Business rules 32-36 apply.
• GFE Moving in and out of Plant. Entity that
  initiates movement marks items upon movement.
  Business rule 33 applies.
• GFP Initially Furnished to Contractor. DoD will
  mark these items before that are furnished.
  Business rule 37 applies.
• GFP in GOCOs. Mark or assign virtual as
  specified in operating contract.

20
GFP IUID Policy Issues

• Do we need 5 categories of property distinction
  for UID?
• Should inactive GFP be tracked that way? Do we
  do this today? Would there be added value?
• If so, would 3 categories suffice with a flag for
  inactivity?
• Real
• Material and Spares
• Equipment

21
GFP IUID Policy Issues

• Degree of difficulty to achieve 100 of assets
  UIDd for
• Material
• Spares
• Equipment
• How should material that would not normally
  require UID be tracked?
• How much movement constitutes the need for
  location update while in the custody of a
  contractor?

22
GFP UII Registry
23
GFP Valuation

• The valuation of an item will be associated with
  its UID, however the government will maintain the
  official record of acquisition value. This
  change will be reflected in DFAR Part 245

24
Implementation Issues

• Validate GFP UII Pedigree Data Elements
• Custodian CAGE
• GFP Item UII
• Date Issued
• Date Received
• Requiring Contract Number
• Parent/Child Relationships
• Property Accountability at Data Level
• Business Rules for GFP UII Registry
• Data Capture
• Interface with Receipt Acceptance
• Assignment of Virtual UIIs
• Retirement of UIIs for GFP Disposals
• Access Protocols
• Publish DFARS GFP IUID Rule

25
Registry Update (Bruce Propert)
26
UID Registry Status

• Implementation Timeline
• Concept definition Oct 03
• Development and Test Nov 03 May 04
• Production May 04
• Move from DLIS domain to bpn.gov domain Sept 04
• Functionality
• Pedigree data capture for End Items
• Source data from vendors
• WAWF Shipment Notification
• Direct electronic
• Web manual submission
• Current population
• 126 UID records
• 18 contracts
• 17 unique CAGE codes

27
UID Registry Status (cont.)

• Recent enhancements throughout UID submission
  flow
• Foreign currency indicator for unit cost
• LD as IAC for DoDAAC
• Future enhancements January 05
• Capability to capture embedded items (e.g.,
  subassembly)
• Capability to identify Government Furnished
  Property
• Capability to capture type of mark
• Virtual
• Other unique marks
• Sets environment for legacy item data capture
• Government authorization and access to registry
• Future enhancements beyond January 05
• Reports
• Location tracking
• Alias association
• Event status indicator
• Electronic query (system to system interaction)

28
Retiring GFP (Lydia Dawson)
29
Retiring GFP and Integration with UID Registry

• To explore the DCMA systems for tracking the
  retirement of personal property what data
  elements are needed in the property systems, what
  data elements are needed from the property
  systems to update the registry
• Lost, Damaged or Destroyed (LDD)
• Part of eTools
• Tracks items that are GFP and CAP
• Tracks items that are no longer usable or
  currently unable to locate
• Tracks items by the case number
• No interface with other systems
• Plant Clearance Automated Reutilization Screening
  System (PCARSS)
• Being rebuilt as part of eTools 12 18 months
• Tracks items that are GFP or CAP
• Currently contains most UID fields
• Tracks the disposition of items at the
  contractors facility when closed
• Based on inventory schedule that the contractor
  provides to the government
• Two-Digit disposition code not consistent with
  GSA
• Approximately 20 unique sales codes
• Tracks items by the case number
• Interfaces with DOD, GSA and NASA tab delimited
  files

30
Next Steps

• Need to define the development and testing
  timeframe to incorporate UID data into LDD and
  PCARSS
• Data submission to UID registry
• Define the transmission file format and method
• Are current data elements sufficient for UID
  registry electronic data entry
• Trigger to be case closed date
• UID registry currently only wants GFP items
• New FAR Rules CAP reverts to GFP when
  transferred from contract to contract (DD250)
• Need to explore the Defense Reutilization and
  Marketing Service (DRMS), Defense Automated
  Information System (DAISY)
• Military Equipment not in contractor facilities

31
Data Capture Working Group

• Goals
• Define strategy to migrate to paperless GFP
• Explore expanded registry access requirements
• Define requirements for on-line GFP
• Confirm data structure
• Outcomes
• Develop migration strategy
• Identify Trigger Points for reporting
• CAP gt GFP
• Incoming
• Inventory
• Identify additional registry access requirements

32
GFP Working Group

• Goals
• Discuss GFP workflow/decision tree, including
  Virtual UIDs
• Discuss list of data elements required to manage
  GFP
• Discuss roles and responsibilities associated
  with data elements
• Discuss VLINs
• Outcomes
• Refine issue areas
• Refine data elements
• Identify Trigger Points for reporting/management
• CAP gt GFP
• Incoming
• Inventory
• Identify additional industry requirements/issues

33
UID Discussion Items
34
New GFP Equipment Flow
Ships
Govt ID GFP
Contractor Receives
Contractor Dels QA
New items
UID data, mark UID data, no mark No UID data,
mark No UID data, no mark
In Place Items
Acknowledge Receipt Discrepancy Report
(364) Receive asset Initiate Stewardship
records ID or mark non-UIDd or Marked items
Maintain Stewardship Records (Active/Inactive)
Loss, Damage, Destruction
Maintenance Physical Location Property
Stewardship changes Within same vendor To a
different supplier
Authority to Use (letter)
Vendor Constraint Notice
Modification
Transfer Notice
Financial Title
Rental Calculations
Contractor Acquired
Disposal
Returned to Govt
Buy or Fabricate
Warranty?
Abandon
Scrap
35
New GFP Equipment Flow
Marked w/ UID or Equiv.?
Accept Register UID (in stewardship)
Yes
Receive New GFP
Will item be returned to govt?
No
Mark prior to delivery to government
Establish alias register
Yes
No
Do not mark
36
New GFP Contract Flow
Is it under a service contract?
Contract plus SOW must specify UID marking
requirement
Yes
Receive New GFP
No (Supply Contract)
Return to DoD for DoD to apply the UID
Does it have a physical UID upon arrival?
No
Modify contract to have contractor apply the UID
DoD waives the UID requirement
Yes
End Process
37
On-line GFP
Program Office
No online DD1149 k2k
Contract GFP Items
Item
Supplier DD250
Data
1149 xfers
contractor
UID
GFP

• I got it
• It broke
• Date Rx
• Condition

Data
Depot Mils1348
Ship notice
Item
38
New GFP Equipment Flow

• 100 GFP UIDed for Asset Accountability
  Valuation
• Track UID Items in Contractor Custody
• GFP Marked with UID by Issuing Source

Property Accountability Systems

• GFP Items
• By Company
• By Program

Industry Inputs

• GFP Registry of Virtual UIDs
• Custodian CAGE
• GFP Item UID
• Date Issued
• Date Received
• Requiring Contract Number
• Parent/Child Relationships

UID Registry (GFP UIDs Flagged)
Contractor GFP Master Plans
Maintenance Systems
Government Inputs
GOCO Government-Owned Contractor-Operated
39
GFP IUID Business Rules

• 32.  Tangible personal property items owned by
  the Government in the possession of a contractor
  will use the asset identification number used to
  track the item as the item's serial number within
  enterprise identifier.
• 33.  Tangible personal property items owned by
  the Government in the possession of a contractor
  will use the enterprise identifier of the
  enterprise maintaining the serial number of the
  item.
• 34.  A UII should be created for tangible
  personal property items owned by the Government
  in the possession of a contractor by using IUID
  Construct 1.
• 35.  For items that do not require a IUID
• If the item is delivered with a
  commercial item mark, it is acceptable to the
  Government.
•  If an item is delivered without a
  commercial item mark, the contractor is not
  required to obtain one.
• 36.  A UII is not required to be physically
  marked on tangible personal property items owned
  by the Government in the possession of a
  contractor unless the item is moved or delivered
  to a different location with a different
  enterprise identifier.
• 37.  Tangible personal property initially
  furnished to the contractor by the Government
  will use the UII provided by the Government. If
  none is provided, establish a UII using the
  criteria in Rules 32-34.
• 38.  Tangible personal property will also require
  markings or labels indicating Government
  ownership.